U.S. Bankruptcy Code

Coronavirus (COVID-19): CARES Act Bankruptcy Changes

Coronavirus-Aid-Relief-And-Economic-Security-CARES Act-on-desk-with-pen

The Senate passed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on March 25, 2020. Enacted on March 27, the legislation placed short-term restrictions on lenders and servicers of federally backed loans. It enforces mandatory forbearance obligations, moratoriums on foreclosures, and revises credit reporting obligations to help individuals and businesses facing financial hardship […]

By Doing Nothing, Does a Creditor Violate the Automatic Stay in Bankruptcy?

Automatic-Stay-ruling-in-the-courts

Under Section 362 of the U.S. Bankruptcy Code, an automatic stay prevents creditors from collecting debts from a debtor. An automatic stay halts all actions, including repossessions, foreclosures, and phone calls, and is enforced by the bankruptcy court. Once collection actions are halted by the court, whether a creditor does nothing and still violates the […]